Businesses risk becoming more expensive to acquire as a result of Gordon Brown’s indication in the pre-Budget statement that goodwill will be subject to tax relief. The government has been consulting on allowing intellectual property to be tax deductible on purchase, but had also put forward the more radical proposal of making goodwill tax deductible. This is a measure which experts believe would ‘change the face of all thinking about tax when it comes to acquisition and structuring of purchases’. But while selling goodwill will be tax deductible, buying it will become a taxable gain, the end result of which, according to Richard Baron, deputy head of the Institute of Director’s policy unit, will be higher purchase prices. He said: ‘It’s a bold decision and probably the right one. It would have been a lot easier if you leave goodwill out of the proposal.’ A technical note has been issued by the Revenue. Double tax and capital gains changes, page 6 More pre-Budget stories www.accountancyage.com/Tax/1113087.
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Just one half of UK practices have implemented a pricing structure around auto enrolment implementation and advice - with many suffering increased costs
Deloitte's north-west Europe foray; BDO, Smith & Williamson investment paths; Shelley Stock Hutter; and Wilkins Kennedy discussed by editor Kevin Reed on our Friday Afternoon Live broadcast
Accountants should alter their perspective on auto-enrolment to maximise business opportunities, according to Eric Clapton.